Name of the Project
Sorby Hills lead/silver/zinc project.

Location
In the Kimberley region of Western Australia.

Project Owner/s
Boab Metals (75%), formerly Pacifico Minerals, and joint venture (JV) partner Henan Yuguang Gold and Lead Company, which holds a 25% interest in the Sorby Hills project.

Project Description
The Sorby Hills project is the biggest undeveloped, near-surface lead/silver/zinc deposit in Australia. It comprises five granted mining leases covering six known lead/silver/zinc deposits.

The prefeasibility study (PFS) has highlighted the low-risk nature of the project, with a well-defined large-scale mineral resource, a simple crush-mill-float processing circuit, high metal recoveries and key approvals received.

The project has a mineral resource of 44.1-million tonnes at 3.3% lead, 38 g/t silver and 0.5% zinc, and proven and probable reserves of 13.6-million tonnes at 3.6% lead and 40 g/t silver.

The PFS base case incorporates the openpit mining of 14.8-million tonnes of ore from four deposits – Omega, A, B and the southern portion of Norton – over a ten-year mine life.

Mined ore will be treated through a simple crush-mill-flotation circuit at 1.5-million tonnes a year to produce 807 000 dry tonnes of lead/silver concentrate with an average grade of 62% lead and 580 g/t silver.

The PFS has demonstrated that the inclusion of a dense-media separation circuit enhances flotation feed grade, increases ore throughput and allows for the economic treatment of lower-grade ore.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$303-million and an internal rate of return of 46%, with a payback of 1.6 years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$182.8-million.

Planned Start/End Date
Not stated.

Latest Developments
Boab has told shareholders that the company and its JV partner, Henan Yuguang Gold and Lead Co, have agreed to recommit to the project and accelerate the finalisation of the development and operations agreement for the project.

Boab has said that advancing the development and operations agreement will help facilitate engagement with potential financiers and will allow for a smooth transition from the definitive feasibility study to project development and construction.

Boab has engaged with the Northern Australian Infrastructure Facility and the Export Finance Facility regarding potential project financing, and hopes to progress discussions with commercial lenders in the coming months, in conjunction with advancing the development and operations agreement with Yuguang.

Boab will also undertake a competitive offtake tender process for its 75% share of the Sorby Hills concentrate production.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Boab Metals, tel +61 8 6268 0449 or email info@BoabMetals.com.